Restaurant Property with
For Sale
$595,000
7904 Memorial Parkway S, Huntsville, AL 35802
Business Opportunity, Huntsville, AL
Property Size2,925 SF
Lot Size0.59 Acres
Price / SF$203.42
Days on Market91
Property Features for 7904 Memorial Parkway S
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bathroom 1
Exterior features
Curb/Gutters, Lighting
Lot features
Corner Lot, High Visibility
Directions
Located On South Memorial Parkway, Approximately 1/4 Mile Past Byrd Spring Road On The Right.
Standard status
Active
APN
1809302000065.000
Size
2,925 SF
Lot size
0.59 Acres
Utilities
Sewer type
Public Sewer
Heating system
Propane (Heating)
Cooling system
Central Air
Water source
Public
Building Details
Floors in Building
1
Flooring type
Tile
Roof type
Shingle
Listing Agency:
Russ Russell Real Estate
(256) 536-7777
Listed By:
Russ Russell · License #25965
(256) 527-7777
Added: Jun 4
Changed: Aug 20
Last Checked: Sep 2 at 2:06AM
MLS# 1822043
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Investment Insights
Based on property information with market context.
This restaurant property includes approximately 2,925 square feet on a 0.59-acre parcel. The building features tile flooring, central air conditioning, propane heating, a shingle roof, lighting, curb and gutters, and two bathrooms. Public water and public sewer serve the site.
The property offers 100 feet of frontage on South Memorial Parkway in Huntsville. Light industrial zoning and the existing restaurant configuration provide a combination of commercial site utility and established improvements.
The property offers 100 feet of frontage on South Memorial Parkway in Huntsville. Light industrial zoning and the existing restaurant configuration provide a combination of commercial site utility and established improvements.
Key Highlights
- 2,925‑square‑foot restaurant property on 0.59 acres
- 100 feet of frontage on South Memorial Parkway
- Zoned light industry
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$40,856
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.87%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$817,120
$817.1K
Cap Rate 7%
$583,657
$583.7K
Cap Rate 9%
$453,956
$454.0K
Market Conditions
NOI Build-Up for 2,925 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$56.2K $19.20/SF
− Vacancy
−$1.7K −$0.58/SF
EGI
$54.5K $18.62/SF
− OpEx
−$13.6K −$4.66/SF
NOI
$40.9K $13.97/SF
Area
Huntsville, AL
Vacancy
3.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$817,120
Cap Rate 7%
$583,657
Cap Rate 9%
$453,956
Alternative Uses
Best Use
Specialty Retail
$583.7K
$510.7K – $680.9K
NOI $40,856 @ 7.0% cap · market cap 6.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$761.7K
$666.5K – $888.6K
NOI $53,317 @ 7.0% cap · market cap 8.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
762
Businesses Nearby
53k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 54%
Shops & Services 31%
Home Improvements & Furnishings 9%
Dining 5%
Kroger
Groceries
28,694 visits/mo
0.5 miles
BP
Shops & Services
5,850 visits/mo
0.3 miles
Exxon
Shops & Services
4,990 visits/mo
0.4 miles
Sherwin-Williams Paint Store
Home Improvements & Furnishings
4,152 visits/mo
0.5 miles
Donatos Pizza
Dining
2,783 visits/mo
0.4 miles
Demographics for 35802, AL
23,842
Population
12,359
Households
1.9
Avg Household Size
44
Median Age
51%
College-Educated
95%
High-School Grad
16.4 sq mi
ZIP Area
1,454
Density / Sq Mi
$72,195
Median Household Income
$46,938
Median Earnings
$1,051
Median Rent
$319,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Existing restaurant space with light industrial zoning, public water and sewer, and central air conditioning.
Where is this conventional restaurant located?
The property is located at 7904 Memorial Parkway S Huntsville, AL.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: 2,925‑square‑foot restaurant property on 0.59 acres; 100 feet of frontage on South Memorial Parkway; Zoned light industry
